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Russell 2000: At Technical Crossroads?
February 29 2016 ( From TradingView )
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The Russel 2000 Index (R2K) is At Technical Crossroads to say the least.
Here is some Technical Observations:
1) R2K is at 9.9% from its bottom reached on February 11 2016 and
SP500 is at only 7.6%.
2) R2K from highest peak price ( reached on June 23 2015 ) to the lowest
price yet ( reached on February 11 2016 ) was 27.2% and only 15.2% for
the Mighty SP500.
So the R2K outperformed lately the Mighty SP500 Index. Interesting to note that this ratio reached the bottom of this cycle on February 9 2016 and almost kissed the support from a weekly downward channel that started back since March 2014. R2k are outperforming since then... ( See chart below - Channel ).
But the real interesting part is that we are now back testing the Break Down Major Trendline that started back on March 2009. This is a crucial technical test for Bulls indeed that will make the difference between a dead cat bounce or a more sustained rally for the R2K. ( See second chart below - Red Trendline - Ellipse ).
Russell 2000: At Technical Crossroads? $SPY, $IWM #Trading #russell2000 #SP500
Russell 2000 Over SP500 ( Blue Line )
21 WMA ( Top Panel - Yellow Line )
SP500 Index ( Candles )
Russell 2000 Index
Daily Candles - Right Scale
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )